My Blog
Market update for March Stats 2024
Prices and inventories up, Sales Down
There are currently 1868 active single family listings on the market in the Pikes Peak region compared to 1480 last year at this time which is a 26.2% increase in active listings. New listings on the market were down 5.4% compared to last March. The average sales price was up .7% to $527,629 compared to last March 2023 and was up 3.2% compared to the previous month, while sales were down 12.5%. That's still 941 single family homes that sold locally last month.
The below chart shows the average price and median price trends:
The median single family sales price was up 2.2% compared to March 2023 and was up 3.1% from the previous month (same number of homes sold above as below) and is now $470,000. There is a 2 month supply of homes on the market.
Cumulative year to date sales are down 7.4% and the average price up .6%. Cumulative YTD new listings on the market up 2.5%.
The below chart shows number of sales YTD in comparison to the past 4 years:
There are 364 condo/townhomes on the market compared to 236 last year at this time, a 54.2% increase. The average price for Condo/townhomes is up 2.8% and the median price is down 1.5% to $335,000. Condo Townhome sales are down 6.2%. New listings on the market are up 7.8%.
This chart shows the average days on market trends. The average days on market is currently 56 days.
The below chart shows the number of new listings on the market by month in comparison to the last 4 years:
The below chart shows number of homes under contract at the end of March each year which is an indicator of sales for next month:
The below chart shows listings on the market by month:
See how much your home could sell for by using your phone’s camera to scan the below QR code. You can also check the selling and buying temperatures of your own neighborhood.
Many people are afraid to buy because they feel if they sell their home first, they won't find what they want. The market is shifting but there are ways to combat the higher interest rates with buydowns and other strategies. Many builders are offering HUGE incentives to buy their standing inventory (remember not to go into the builders model without me). Call me for a free consultation to learn more. 719-310-2404
What is the NAR and Keller Williams Lawsuit settlement about?
The class-action lawsuit – Sitzer v. the National Association of Realtors – alleged that NAR, Keller Williams Realty, Anywhere Real Estate (formerly known as Realogy), RE/MAX and HomeServices of America (all major real estate brokerages), colluded to artificially inflate agent commissions. NAR et all lost the case and you have probably heard last week that the National Association of Realtors agreed to a settlement of $418,000,000. I have seen some crazy takes on what that means on the national news, and even misunderstanding from other agents about what the settlement means to include, it will ease house prices, it reduces commissions from the “standard” 6% commission and a seller no longer pays a buyer’s agent’s commission among other disinformation. First of all, to say there is as a standard commission is blatantly FALSE. There is not now, nor has there ever been a standard commission and for the media machine to say so is complete ignorance or disinformation.
The NAR settlement agreement would end litigation of claims brought on behalf of home sellers related to broker commissions. The settlement is subject to court approval. The reason they decided to put forth a settlement is to avoid years of costly appeals. The agreement would resolve claims against NAR, over one million NAR members, all state/territorial and local REALTOR® associations, all association-owned Multiple Listing Services (MLSs), and all brokerages with an NAR member as principal that had a residential transaction volume in 2022 of $2 billion or below. NAR still maintains they have not done anything wrong.
So let’s break down what this means.
1st Commissions are negotiable and always have been. There is no “standard” commission. Period.
2nd There are all kinds of rumors about what this means including, buyers will have to pay their own commission.
- It would be the biggest conspiracy theory ever for all brokerages and NAR to have conspired to inflate commissions. I have been in real estate since 1990 and was taught from the beginning in NAR ethics classes which are required that commissions are negotiable.
- Commissions are negotiable and are agreed to on the listing contract by the seller in writing with the split showing how much goes to the buyers agent.
- Technically the WHOLE commission is earned by the listing agent when a contract is agreed on and paid out at closing and that seller’s agent shares that commission with the buyer’s agent as offered in the local Multiple List service on that listing. There is one commission with offer of coop compensation to a buyers broker.
- Agents charge too much: I have a list of 179 things a Realtor does that I can share with anyone and if that’s not enough I have another list of 105 more things I can share. Not to mention the offers we write that don’t go through because of competitive bids Brokers are paid for their expertise, knowledge and time, etc…
- A real estate transaction comes with risk; as well as, many details a buyer doesn’t understand, not to mention the transaction is stressful and emotional. Most buyers choose to work with a real estate broker for these reasons.
- In Colorado Springs especially there are lot of VA buyers because of all our military bases and services for retired military. The VA buyer CANNOT pay a commission. If forced to pay a commission it would disenfranchise the VA buyer and they wouldn’t be able to compete keeping them from even buying a home.
- Imagine if a buyer has to save for their down payment and would then have to pay the commission, it will take even longer for a buyer to save to buy a house and this will stifle the already stressed real estate market.
- Then the most obvious thing is when you bought your house the seller likely paid your buyer’s agents commission so it’s really nothing more than paying it forward. Oh and by the way if you are buying another house after selling yours your agent get’s paid by that sellers agent and so on.
- Also if the seller doesn't offer a cooperating commission the seller limits their field of buyers significantly that can't pay their own commission, so ultimately this hurts the seller and the home stays on the market longer and the seller may end up lowering the price making less money.
- So in reality nothing has changed except the lawsuit is supposed to make the public aware that commissions are negotiable and there is no “standard commission”. Instead the mass news media has misunderstood what the lawsuit is about, but that hasn’t stopped them from spreading disinformation.
So what are the changes that NAR is making to ensure that consumers are protected and agents that don’t understand compensation rules make them clear to the public? I’m going to state them verbatim from the NAR website with my comments inserted:
New rule about written agreements from the NAR website:
- NAR has long encouraged its members to use written agreements because they help consumers understand exactly what services and value will be provided, and for how much.
- The settlement provides that MLS participants working with buyers must enter into written representation agreements with those buyers. (since buyer agency forms were created I have always had my buyer’s sign an agency agreement so there is no misunderstanding).
- This change will go into effect in mid-July 2024.
- After the new rule goes into effect: MLS participants acting for buyers would be required to enter into written agreements with their buyers before touring a home. These agreements can help consumers understand exactly what services and value will be provided, and for how much.
- NAR has agreed to put in place a new rule prohibiting offers of compensation on the MLS. (NOT PROHIBITING OFFERS OF COMPENSATION. This may be where the confusion comes into play). The change will go into effect in mid-July 2024. (Buyer broker compensation can still be offered it just can’t be noted in the MLS like it is now, it will have to be done off the MLS).
- The types of compensation available for buyer brokers would continue to take multiple forms, depending on broker-consumer negotiations, including but not limited to:
- Fixed-fee commission paid directly by consumers.
- Concession from the seller.
- Portion of the listing broker’s compensation.
- “Compensation would continue to be negotiable and should always be negotiated between agents and the consumers they serve.” (These offers of compensation have always been available to consumers, at least here in Colorado).
- “After the new rule goes into effect, listing brokers and sellers could CONTINUE to offer compensation for buyer broker services, but such offers could not be communicated via the MLS.”
- “The settlement expressly provides that sellers may communicate seller concessions — such as buyer closing costs — via the MLS provided that such concessions are not conditioned on the use of or payment to a buyer broker.”
Contact me if you have any questions at 719-310-2404 or luther@lutherbenson.com
End of Article
Market update for February 2024.
Sales inventories and prices up last month.
There are currently 1830 active single family listings on the market in the Pikes Peak region compared to 1443 last year at this time which is a 26.8% increase in active listings. New listings on the market were up 17% compared to last February. The average sales price was up 2.2% to $511,272 compared to last February 2023 and was down 2.1% compared to the previous month, while sales increased 1.8%. That's 792 single family homes that sold locally last month.
The below chart shows the average price and median price trends:
The median single family sales price was up 3.6% compared to February 2023 and was up 1.3% from the previous month (same number of homes sold above as below) and is now $455,950.
There is a 2.3 month supply of homes on the market. 216 single family listings expired, or were withdrawn from the market last month. Many of these homes will go, or have already gone back on the market.
Cumulative year to date sales are down 3.7% and the average price up .7%. Cumulative YTD new listings on the market up 8.6%.
The below chart shows number of sales YTD in comparison to the past 4 years:
There are 351 condo/townhomes on the market compared to 225 last year at this time, a 56% increase. The average price for Condo/townhomes is up 1.8% and the median price is down .4% to $335,000. Condo Townhome sales are actually up 26%. New listings on the market are up 15.4%.
This chart shows the average days on market trends. The average days on market is currently 53 days.
The below chart shows the number of new listings on the market by month in comparison to the last 4 years:
The below chart shows number of homes under contract at the end of February each year which is an indicator of sales for next month:
The below chart shows listings on the market by month:
See how much your home could sell for by using your phones camera to scan the below QR code. You can also check the selling and buying temperatures of your own neighborhood.
Many people are afraid to buy because they feel if they sell their home first, they won't find what they want. The market is shifting but there are ways to combat the higher interest rates with buydowns and other strategies. Many builders are offering HUGE incentives to buy their standing inventory (remember not to go into the builders model without me). Call me for a free consultation to learn more. 719-310-2404
Market update for January 2024.
Sales are down but prices up slighty last month.
There are currently 1639 active single family listings on the market in the Pikes Peak region compared to 1749 last year at this time which is a 6.7% decrease in active listings. New listings on the market were down .2% compared to last January. The average sales price was down .5% to $522,379 compared to last January and was up .5% compared to the previous month, while sales were down 9.6%. That's still 739 single family homes that sold locally last month.
Interest rates have hit an 8 month low which is getting buyers that were holding off back in the market.
The below chart shows the average price and median price trends:
The median single family sales price was up 1.1% compared to January 2023 and was down 1.1% from the previous month (same number of homes sold above as below) and is now $450,000.
There is a 2.2 month supply of homes on the market. 308 single family listings expired, or were withdrawn from the market last month. Many of these homes will go, or have already gone back on the market.
Cumulative year to date numbers match the above stats since we have only 1 month of stats this year so far.
The below chart shows number of sales YTD in comparison to the past 4 years:
There are 333 condo/townhomes on the market compared to 256 last year at this time, a 30.1% increase. The average price for Condo/townhomes is up 10.7% and the median price is up 6.7% to $360000. Condo Townhome sales are actually up 20%. New listings on the market are up 11.6%.
This chart shows the average days on market trends. The average days on market is currently 54 days.
The below chart shows the number of new listings on the market by month in comparison to the last 4 years:
The below chart shows number of homes under contract at the end of January each year which is an indicator of sales for next month:
The below chart shows listings on the market by month:
See how much your home could sell for by using your phones camera to scan the below QR code. You can also check the selling and buying temperatures of your own neighborhood.
Many people are afraid to buy because they feel if they sell their home first, they won't find what they want. The market is shifting but there are ways to combat the higher interest rates with buydowns and other strategies. Many builders are offering HUGE incentives to buy their standing inventory (remember not to go into the builders model without me). Call me for a free consultation to learn more. 719-310-2404
Questions? Contact Me.
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